Sony Ericsson came out this week with a great new business plan. They have decided to begin competing in the market for cheap phones. Sony Ericsson is the Second Most Profitable mobile phone company after Noka, which is also the number one mobile phone company for market share in addition to profits.
Sony Ericsson is holding onto the number 4 position in terms of market share, but they grew over 2 percent year of over year last year. They still lag Motorola and Samsung.
Grass is Greener on the Less Profit Side of the Fence
Apparently Sony Ericsson is turning green with envy over the profit warnings from Motorola and wants some of that moto profit dropping mojo for itself. So Sony Ericsson is going to sell cheaper phones and they started this week, by offering 4 new low end phones.
But wait, maybe they are not so crazy after all. Their low end phones are priced at levels of 150 – 200% more than base models from Motorola and Samsung. Maybe they don’t want to lose that number two spot from profitability after all.
Sony Ericsson also introduced four higher end phones including two new walkman phones. Sony Ericsson has sold 20 million walkman phones in total, which is about how many iPods were sold in the fourth quarter of 2006. If their latest Walkman phones continue to gain traction, they might find themselves chasing or leading Apple as well.